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Notes for Guidance - Bankruptcy (Scotland) Act 2016 (as amended)

This guidance describes the general functions of Accountant in Bankruptcy, interim trustees, trustees and commissioners in relation to their responsibilities regarding bankruptcies which started on or after 30 November 2016.

3.2 Continuation of debtor’s business by the interim trustee

Sections 39(2)(h) of the Act allows the interim trustee to continue the debtor’s business.

There is a statutory duty on the interim trustee to preserve the debtor’s estate pending the appointment of the trustee under Section 53(1) of the Act. The interim trustee must take all reasonable steps to prevent additional loss to the creditors, prior to appointment of the trustee.

When an interim trustee decides to take responsibility to carry on the debtor’s business in terms of section 39(2)(h) of the Act, they should be clear their position is no different from that of a trustee as stated in section 10.5.

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